Acorda Therapeutics Inc had filed a patent litigation against the Hyderabad-based pharma company in the US district court of Delaware in response to Aurobindo's submission of an Abbreviated New Drug Application (ANDA) to the US Food and Drug Administration (FDA) seeking marketing approval for a generic version of Ampyra.

As a result of the settlement agreement, Aurobindo will now be permitted to market a generic version of Ampyra in the US at a specified date in 2027, or potentially earlier under certain circumstances, the statement issued by Acorda Therapeutics Inc said.

"Details of the settlement are confidential. The parties will submit the agreement to the Federal Trade Commission and the Department of Justice as required by federal law," it said.

The parties will request the court enter a consent order, in which it will dismiss the company's litigation against Aurobindo, Acorda added.